Can the EU Hold Software Makers Liable For Negligence?

The EU and US are taking different approaches to introducing liability for software products, with the EU taking a more stringent approach. The current status quo protects the software industry from liability for defects or issues, leading to underinvestment in product security. The EU's new directive updates product liability law to treat software like any other product, allowing consumers to claim compensation for damages without proving negligence. The directive sets a high bar for software makers, who can avoid liability if they prove a defect was not discoverable given the current state of scientific and technical knowledge. The law applies only to individuals, not companies, and excludes damages for professional use, but allows for collective claims like class actions. EU member states have two years to implement the directive's provisions. The European Commission will publicly collate court judgments based on the directive, making it easy to track progress. The software industry's lack of accountability has led to vulnerable code being published without consequence, highlighting the need for change. The EU's approach may be seen as drastic, but it will soon be clear if it is effective. The directive's impact will be closely watched as EU member states implement its provisions.